Sprint-Nextel settles age bias suit for $57 million
Yesterday, Sprint-Nextel was able to breathe a sigh of relief, when U.S. District Judge John Lungstrum approved a $57 million settlement that resolved age discrimination claims against Sprint Nextel Corp. over the firing of nearly 1,700 former employees.
The settlement ends a lawsuit that alleged Sprint had engaged in a pattern and practice of age discrimination by targeting for layoffs employees who were 40 years of age and older. The case was filed more than four years ago and attracted national attention because of its extensive computer-based document discovery. The AARP Foundation litigation group assisted the five law firms that represented the 1700 former employees.
According to Judge Lungstrum it was "remarkable” that in a case involving so many plaintiffs there were only two objections — both by former call center employees complaining not of the settlement but of the specific payments they are due to receive. And that no plaintiffs chose to opt out of the settlement.
The plaintiff settlements range from $4,226 for hourly call center employees to $35,738 for employees at the top of the settlement scale, according to court documents. The average settlement disbursement works out to about $20,330 per plaintiff who opted to be a part of the lawsuit.
The case focused on the Jack Welch “forced ranking,” employee-evaluation system. Other companies such as Goodyear Tire & Rubber Co., Ford Motor Co. and Capital One have been sued in recent years over such rankings.
This case sends a message to large employers such as Sprint that Age discrimination and flawed ranking systems will not be tolerated, otherwise, there will be stiff penalties to pay. It is such a shame that a company with such a stellar reputation would engage in a practice like this.
Click here to read more about this case from the Kansas City Star.
